Canada Life extends terms and conditions on group risk products

Canada Life has extended the terms and conditions on its group risk benefits that are connected to a pension scheme.

The extension applies to all employers auto-enrolling employees before 31 December 2014.

The provider’s terms and conditions had previously only applied to employers with 250 or more pay-as-you-earn (PAYE) employees.

The terms include:

  • No need for employee data at the auto-enrolment date, with costs reconciled the following year if the pension membership covered under a policy increases by less than 25%.
  • Maintaining unit rates if the pension scheme members covered under the policy increases by 25% or more on its group life assurance and group critical illness contracts as a result of auto-enrolment.
  • Only one set of data required three months after the auto-enrolment date, to allow for opt outs and other administrative activities to settle and stabilise, where pension scheme members covered under the policy increases by 25% or more.
  • An amnesty for previously undeclared late entrants at the first auto-enrolment date.

Paul Avis (pictured), marketing director at Canada Life Group Insurance, said: “We see a great opportunity for advisers to expand current group risk schemes to previously uninsured members.

“When we started our automatic enrolment work we had a clear ambition: to make it easy for advisers to do business with us and to maximise the market growth opportunities that automatic enrolment presents.

“With the reduction in administration from these terms and conditions, we believe we have achieved this, but would also add [that] this is the start of a process of our support to advisers and employers.”